crm ppt 3-pgdm-rm

8/8/2019 CRM PPT 3-PGDM-RM

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CUSTOMER

RELATIONSHIPMANAGEMENT

Prof. Manju Lamba

ITS, Mohan Nagar, Ghaziabad.

E-mail: [email protected]


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WHY ORGANIZATION LOSE THEIR

CUSTOMER

1. Price Related Issues: match of price & value.

If mismatch occurs than switch over of brand

2. Product Related Reasons: technological

advancements results- new brands of newcompany offers better performance as compared

to existing brand

3. Service Related Reasons: service can be given

at three diff. levels- pre-sales, during sales &

after sales. Any dissatisfaction regards to

service result in brand switch over

4. Benefit Related Reasons: various augmented

benefits offered by competitors


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5. Competitors Related Reasons: technological

advancements, attractive offers, value added

services etc offered by competitors6.Personal Reasons: a customer can become a

brand defector due to:

He moved away from market area where brand is

sold Role changes in life cycle

Anger, disgust, distress developed within the

process of delivery

Sentimental reasons Influence of other members of family


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WINNING STRATEGIES & PROCESS FOR

EFFECTIVE CRM

1. People: People within the org. have basic role in

developing & maintaining relationship with the

customer. Everyones work in the org. is towards,

SatisfyingC

ustomer

2. Process: Involves logical sequence of activities from

the following- Need Requirement Need

Fulfillment. This requires manufacture of

products with desired attributes.

Process has to be derived from customers viewpoint


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3. Product: Product must provide value addition.

A customer with a given product may become

dissatisfied customer due to change in this

expectation.4. Organization: An Org. should be aware of

technological advancements & provide quality

service with customer expectation. It should

concentrate on total customer expectation


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5. Setting Satisfactory Service Standard:

Customer Expects Quality Product With

Quality Service.Pre Sales Customer develops expectation.

So in that case org. must ensures quality &

availability of product at right time .

During Sales Customer experiences the

sales process. So org. must provide customer an

opportunity to inspect, reply promptly.

After Sales Org. must provide supporting

services such as speedy replacement, simplified

complaint procedure, efficient maintenance &

repair service.


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6. Concentration On Competitor: Concentration

must be on competitors performance, their strategy &

style of operations & comparisons with their own.

Customer always make this comparison & decide

their future purchase pattern

7. Customer Analysis:

Present Customer Of Ours

Customer

Prospective Customer (Competitors)

Periodical Customer Audit Program must be done.

Org. may use external agencies & customer &

competitors analysis can be done.


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8. Cost Analysis: Attention must also be on cost of

product.

Sincere efforts towards cost reduction withoutcompromising quality.

Org. must do value analysis.

9. Concentration On Paying Abilities:

Before fixing price, the paying ability of customermust be viewed

Prices are to adjusted within the paying ability of

customer

Org. may have to sacrifice small portion of profits

There exist benefit of long term relationship &

future opportunities


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10. Knowledge On Purchase Behavior Pattern:

Outcome of purchase decision:

1. Purchase2. Rejection

3. Postponement

4. Search for substitute

Org. must have an idea about what % of customerarrive at what decision

11. Differentiation In Price & Quality Standards:

Org. may provide variety of brands with price

variationsTo meet a particular need, 3 or 4 brands of varied

quality & at differing price level must be available


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12. Focus On Reducing Dissatisfaction:An Org.

must be pro-active to a situation where customer

becomes dissatisfied & need remedial actions

Cause of dissatisfaction has to be identified & solved well

If complaints are well attended then:

Dissatisfied Customer Loyal Customer

13.Attention on changing requirement of customer14. Concentration on performance

15. Training to supply chain employees

16. Empowerment to service provider

17. Incentivizing service providers18. Augmenting intangible benefits

19. Visit to the point of usage of the product

20. Develop partnership with customers


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21. Organizing customer clubs

22. Relationship based pricing schemes

23. Identifying with social events & concern for social

problems

24. Effective customer communication system

25. Customer complaint monitoring cell

26. Focus on preventive actions

27. Concentration on customer satisfaction research

28. Focus on focus group

29. Building switching barriers


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CHARACTERISTICS OF GOOD CUSTOMER

SATISFACTION SURVEY

Growth Strategies International (GSI) performed

a statistical analysis of customer satisfaction

data

Encompassing the findings of over 20,000customer surveys conducted in 40 countries

Conclusion of the study:

1. Totally satisfied customer contributes 2.6 times

as much revenue to a company as a somewhat

satisfied customer

2. Totally satisfied customer contributes 17 times

as much revenue as a somewhat dissatisfied

customer


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3. Totally dissatisfied customer decreases revenue

at a rate equal to 1.8 times what a totally

satisfied customer contributes to a business


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SITUATION 1

A large international hotel chain wanted toattract more business travelers. They decide to

conduct a customer satisfaction survey to find out

what they need to improve their services for this

type of guest.

A written survey was placed in each room andguest were asked to fill it out. However, when the

survey period was complete, the hotel found that

the only people who had filled in the surveys

were children and their grandparents

Why??????


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REASON

Business travelers dont have time& interest in participating this

kind of survey!


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SITUATION 2

A large manufacturing company conducted the

first year of what was designed to be an annual

customer satisfaction survey. The first year, the

satisfaction score was 94%. The second year, with

the same basic survey topics, but using another

survey vendor, the satisfaction score dropped to

64%. Ironically, at the same time, their overall

revenues doubled!

Why???????


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REASON

Different survey designs, methodologies and

population characteristics dramatically alter the

results of the survey

1. The questions were simpler & phraseddifferently

2. The order of the question was different

3. The targeted respondents were at a different

management level

4. The overall satisfaction question was placed at

the end of the survey


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QUESTION TYPE

Survey questions can be categorized into three

types:

1. Overall satisfaction question: How satisfied

are you with XYZ company?2. Key attributes: satisfaction with key areas of

business e.g., sales, marketing and operation

etc.

3. Drill down: satisfaction with issues that are

unique to each attribute and upon which the

actions may be taken to directly remedy that

key attributes issues.


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PYRAMID STRUCTURE OF OVERALL

SATISFACTION QUESTION

Overall

Satisfaction

Key Attributes

Drill Down


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QUESTION DESIGN

1. The survey must keep to a reasonable length.

Over 60 question in a written survey will be

tiring. Anything over 8-12 questions begins

taxing the patience, of participants in a phone

survey.

2. The question should utilize simple sentenceswith short words

3. Questions should ask for an opinion on only one

topic at a time. E.g., how satisfied are you with

our products and services?4. Superlatives such as excellent or very should

not be very used in questions. Such words tend

to lead a respondent toward an opinion


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5. Feel good question yield subjective answers on

which little specific action can be taken. E.g.,

how do you feel about XYZ companys industry

position?

It will produce responses that are of no practical

value in terms of improving an operation.


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THE PERILS OF PAPER

Fill in the dots format was one of the most

common types of survey.

But there were flaws in it

For example: all prior answers were visiblewhich leads to comparison with current questions

Respondent subconsciously tend to look for

symmetry in their responses become guided by

the pattern of their responses, not their true

feelings

Example: In a survey conducted by Xerox

corporation, over 1/3rd of the respondent were

discarded


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TELEPHONE SURVEY

Yield more accurate response than a paper

survey

But it too has flaws

1. When a respondents identity is clearly known,possibility of being challenged or negative

response at a later date produces a strong

positive bias in their replies. This is called as

Cassandra Phenomenon

2. People becomes friendlier as a conversation

grows longer, thus influencing question

responses


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3. Human nature says that people like to be liked.

Therefore gender biases, accent, perceived

intelligence, or comparison all influenceresponses

4. Telephone surveys are intrusive on a senior

managers time.

An unannounced phone call may create an initialnegative impression of the survey.

Many respondent may be partially focused on

clocks instead of questions

Optimum responses are dependent upon arespondents clear mind and free time, two things

that senior manager often lacks


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NEED FOR A HIGH RESPONSE RATE

Negative people tend to answer a survey more

often than positive because human nature

encourages venting negative emotions.

A low response rate generally produces negativeresults

Smaller percentage of a population is less

representative of the whole


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THE ACCURACY OF TERMS

totally satisfied customer is between 3 and 10times more likely to initiate a repurchase, and

measuring this top-box category is significantly

more precise than any other means

Survey which measures % of totally satisfied

yields more accurate results

Many surveys offer a Neutral choice on a five-

point scale for those who might not want to

answer the question, or those who are unable to

make decisions This bail out option decreases the quantity of

information that is we get Insufficient

Information


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THANK YOU

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